Dave Sharma (Wentworth, Liberal Party) Share this | Hansard source

The Australia's Foreign Relations (State and Territory Arrangements) Bill 2020 and the Australia's Foreign Relations (State and Territory Arrangements) (Consequential Amendments) Bill 2020 are very important pieces of legislation. One of the most important roles of the Commonwealth government is to conduct Australia's external relations and foreign affairs. There is but one actor in Australia with international personality that can enter into and conduct diplomatic relations with other countries; negotiate, ratify and implement treaties; and represent our nation in international bodies and fora. That entity is the federal government. In a federal system such as ours, with multiple levels of government, this can present challenges. State and territory governments and local governments often have a reason to engage with foreign governments, perhaps to encourage investment, to foster cultural or educational exchange or to promote ties in specific areas, such as clean energy or agriculture—any number of things. On the whole, this should be welcomed. Most of these engagements add to the breadth of Australia's international ties and are all to the good.

However, this state of play does present some challenges. One is that there is no formal visibility of such arrangements by the Commonwealth government, which means at times that we're not making the most of them. The other is that from time to time there is a risk that arrangements entered into might be at odds with, or perhaps even undermine, Australia's broader foreign policy interests and objectives. At times, unscrupulous foreign governments may seek to exploit a lack of knowledge and expertise about such objectives at the state government level for that very purpose: to undermine or subvert a policy of Australia's that they do not like. This could be as innocent as a local council entering into a friendship agreement with an entity that might claim status in international law but which Australia does not formally recognise as a country entity, such as Somaliland or Western Sahara. It could be lending support to a particular perspective on an international issue that is highly contested, perhaps involving a border or a territorial dispute in areas such as Crimea or Nagorno-Karabakh. Or it could be endorsing a campaign which Australia is resolutely opposed to, such as the Boycott, Divestment and Sanctions campaign against Israel.

When it comes to foreign affairs, it's vital that Australia speaks with only one voice, and this legislation will help ensure that we speak with one voice on the international stage. It will remedy a gap in Commonwealth oversight and in Commonwealth knowledge and it will create a process where all levels of government can work together effectively in a way that is consistent with our foreign policy objectives. Under this legislation, the foreign minister will have the power to review any existing and any prospective arrangements between state and territory governments, local governments, public universities and foreign government or related entities. The foreign minister will be empowered to determine whether such arrangements are in any way contrary to, or likely to adversely affect, Australia's foreign relations. And arrangements that may adversely affect Australia's foreign relations, or are inconsistent with our foreign policy objectives, can be prevented by the minister from proceeding or can be terminated.

This bill is not directed abroad or directed at any particular country, it is directed internally, towards Australian entities and institutions, and is designed to ensure that our own systems and processes are up to speed. The bill's not to intended to discourage non-federal entities from pursuing agreements with overseas counterparts, or to overly impose bureaucracy or to be intrusive. The bills are intended to be proportionate and risk-adjusted, and it's for this reason that these bills establish an approval regime and a notification regime—two separate regimes. So-called 'core' arrangements, such as those between state and territory governments and foreign national governments, are rightly subject to a higher level of scrutiny under these bills as they have a greater prospect of impacting on, and potentially undermining, Australia's foreign policy. For this reason, for core arrangements, approval will be required from the Minister for Foreign Affairs before commencing negotiations or entering into such an arrangement. So-called 'non-core' arrangements are lower risk and are subject to a lower level of scrutiny and oversight; just a simple notification regime. This covers things such as agreements between states and overseas provinces or local councils, or sister-city relationships. In this instance, notification of the foreign minister is all that will be required.

The bill also empowers the foreign minister to look back and review any pre-existing arrangements at this level concluded prior to the passage of this legislation. When it comes to universities, it's important to be clear that the legislation only affects Australian public universities to the extent that they enter into arrangements with foreign governments, or with foreign universities that do not enjoy institutional autonomy. So most university-to-university arrangements will not be captured and the arrangements that do meet this test will only be subject to the notification regime.

The Senate Legislation Committee on Foreign Affairs, Defence and Trade recommended two amendments to this legislation in its report of 5 November, to better define 'institutional autonomy' for the purposes of assessing arrangements with foreign universities and a three-year statutory review. I support both of these amendments and I understand the government will shortly introduce these.

In conclusion: in a more globalised and interconnected world, and in a more contested and uncertain strategic environment, ensuring Australia speaks with a single and coherent voice on the international stage is more important than ever. This bill will allow us to do just this. I commend it to the House.

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